M2 Telecommunications Pty Ltd - s.87B undertaking

Company or individual details

  • M2 Telecommunications Pty Ltd
    090 251 424

Undertaking

During June 2007 to February 2009 M2 Telecommunications represented on its Simply Mobiles website to the effect that:

  • M2 Telecommunications was not required to provide refunds and mobile phone manufacturers were responsible for all warranty claims on mobile phones sold through the Simply Mobiles website.  The ACCC was concerned that the warranty representations may have misled consumers because express warranties offered by mobile phone manufacturers are in addition to, and not in the place of, the statutory rights available to consumers under the Act.  These statutory rights entitle consumers to a refund from a retailer in certain circumstances and cannot be excluded;
  • preconfigured software will not have an impact on a customer’s ability to use the mobile phone on any other compatible Australian mobile network.  The ACCC was concerned that the preconfigured software representations may have misled consumers because the existence of preconfigured software does or could have such an impact in certain circumstances; and
  • certain mobile phones sold through the Simply Mobiles website were compatible with all Australian 3G networks.  The ACCC was concerned that the network representations may have misled consumers because  those mobile phones were not compatible with Telstra's NextG network.

M2 Telecommunications has acknowledged the ACCC’s concerns that consumers may have been misled and deceived by the representations in contravention of sections 52, 53(c) and 53(g) of the Act.

M2 Telecommunications has offered the ACCC a section 87B undertaking that it will:

  • not make similar representations in the future;
  • offer affected consumers redress in the form of replacement mobile phones or refunds;
  • publish a corrective notice on its website;
  • publish an information article in a telecommunications industry journal; and
  • review and maintain its Trade Practices Compliance Program.

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